Asian markets mostly down ahead of G-7 meeting
Asian markets mostly down ahead of G-7 meeting
HONG KONG (AP): Most Asian markets closed lower yesterday prior to a meeting of world finance ministers, with Malaysia's key index tumbling three percent on company liquidation fears.
Kuala Lumpur's benchmark Composite Index fell 20.22 points to finish at 644.62, slightly below a key psychological support level of 650 points.
The fall came a day after it emerged that Multi-Purpose Bank Bhd. has sought to wind up construction company Bescorp Industries Bhd., and SCK Group Bhd., another construction company, also has been placed under receivership. Investors worry that more companies could soon join them.
Some suggested the index could fall back to early January's 480-level.
Despite the share prices decline, the ringgit traded higher against the dollar late Wednesday, trailing the stronger yen.
In late trading, the dollar was quoted at a mid-rate of 3.7025 ringgit, compared to 3.7150 late Tuesday.
But other Southeast Asian currencies slipped lower against the U.S. dollar in subdued Asian trading as the market awaited signals on the strength of the yen from the Group of Seven meeting.
Finance ministers and central bankers from the G-7 - the United States, Japan, Germany, Britain, Italy, France and Canada - will discuss global finance issues, including Japan's weak economy.
There are rumors that the U.S. Federal Reserve and other G-7 central banks may help the Bank of Japan support the yen through joint intervention, traders said.
The dollar slipped against the yen on the rumors.
In late trading, the dollar bought 129.28 yen, down 0.54 yen from late Tuesday in Tokyo and also below its late New York level overnight of 129.55 yen.
Share prices in Japan bucked the regional trend and rebounded slightly.
The benchmark Nikkei Stock Average gained 0.14 percent, finishing at 16,299.30. It lost a total of 259.34 points in the previous three days.
Buying of some blue chips helped push the Nikkei higher, traders said.
In Singapore, share prices also closed sharply lower on tumbling regional currencies and rating downgrades on several local banks, dealers said.
The benchmark Straits Times Industrials Index fell 1.1 percent to 1,543.94 points.
In Hong Kong, a three-day rally in share prices was snapped as investors took profits on the territory's biggest stocks.
The blue-chip Hang Seng Index closed down 0.4 percent at 11,371.06, having gained 0.6 percent on Tuesday.
Bangkok's markets were closed for Thai New Year holidays.
Elsewhere
In Manila, Philippine shares closed lower on the back of profit-taking rekindled by growing concerns over the country's political prospects after elections next month. It retreated 0.5 percent to 2,210.57 points.
In Seoul, South Korea's key index ended slightly up on what analysts see as a rebound from Tuesday's sharp falls. It closed up 0.24 points at 467.87.
In Taipei, Taiwan's shares ended higher for the first time in a week, buoyed by gains in U.S. markets. The main index rose 0.48 percent to 8,807.31.
In Australia, share index posted its fourth record high close of the month, as gains across nearly every industry group propelled the key index another 1.0 percent higher to 2,870.5 points.
In New Zealand, the stock index finished higher on the back of gains in forestry stocks, closing up 13.58 points at 2,328.00.